If a Company Made a Principal Repayment on a Long-Term

question 46

Multiple Choice

If a company made a principal repayment on a long-term loan, which of the following statements about the repayment is true?

• A)It is reported in the cash from operations.
• B)It is reported in the cash from financing activities.
• C)It is reported in the cash from investing activities.
• D)It is reported as an expense on the income statement.

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Definitions:

Codes Of Ethics

Written guidelines that state values and ethical standards intended to guide the behaviour of employees.

Ethical Dilemmas

Situations in which a person must choose between two or more morally correct actions that conflict with each other.

Corporate Social Responsibility

The obligation of an organisation to act in ways that serve both its own interests and the interests of its stakeholders.

Employee Handbook

A manual or document that provides information about the company's policies, procedures, and guidelines for employees.